It’s next to impossible to find someone who doesn’t have some debt these days, especially if they went to college after high school. So, when you feel the pressure of debts and creditors bearing down, you may think that it’s just the normal way of things. Everyone has debt, and that’s the way it is, right? But the truth is that it’s not normal to be so pressured by debt all the time. Here are five sure-fire signs that it’s time to consider a fresh start with a bankruptcy in NYC.
1. The debts don’t ever get smaller.
If you can’t afford to pay more than the minimum payment each month, then you probably don’t see much change to the bottom line of many high-interest debts. Additionally, if you are paying off one debt by racking up another on a credit card, then you aren’t really getting rid of debt at all. In either of these cases, no positive change is being made in your finances, and it may be better to consider starting over with a clean slate.
2. Creditors have threatened to take you to court.
If creditors have begun threatening legal action such as garnishments or repossession, then it is a very good time to consider filing for bankruptcy in NYC. Once you begin the filing process, a protection order called an automatic stay will be put into place, which forbids any creditors from taking legal action against you. It is much better for you to control how the legal proceedings happen, rather than trying to defend yourself from a creditor’s case.
3. You still have debts, but you have lost your income.
It is hard enough to pay off debts when you have a sufficient income. If you have lost your job, or your income has dried up for any other reason, then it’s next to impossible to keep debt in line. Once the late payments and fees begin adding up, you can find yourself with a lot more debt very soon. Filing for a Chapter 7 bankruptcy in NYC gets you out from under these debts before they crush you.
4. You’ve started dipping into your retirement fund to pay your debts.
Using your savings account to pay your debts is one thing – after all, most of us save money for situations such as these, where our usual income is not enough. But your retirement fund isn’t really a savings account. It’s meant to be your income when you grow old enough to leave the work place. Borrowing from it now means that you’re stealing from your elderly self. This is a good sign that you may need to consider bankruptcy. Be sure to use a qualified bankruptcy lawyer to ensure that they can help you protect your retirement fund and other assets throughout the bankruptcy procedure.
5. You’ve been considering a high-risk loan.
Loans such as auto title loans or payday loans carry a lot more risk than most people realize. Not only are these companies designed to make money – charging interest rates as high as 300%, 400%, or even 600% in some states – but the payment date is usually only a month or two after getting the loan. Will you be able to come up with more than double your original debt amount in a month? If so, then you are better off negotiating with the creditor. If this is not the case, then a bankruptcy offers you more long-term benefits to get out from under the debt.
If you identified with any of these signs, call my office today at 212-244-2882 to get started with bankruptcy filing in NYC.